BNSF Warns Against Union Pacific-Norfolk Southern Merger, Citing Potential Service Disruptions
BNSF Railway has expressed its opposition to Union Pacific's proposed acquisition of Norfolk Southern, warning of potential negative impacts on customers and the industry. In a note to customers on Monday, BNSF's Todd Richards encouraged them to voice their concerns to the Surface Transportation Board.
BNSF argues that interline collaboration, rather than a merger, is the appropriate response to the Union Pacific-Norfolk Southern (UP-NS) merger. The company predicts that if the acquisition is approved, UP will close over 300 intermodal lanes, based on its assumption of discontinued routes. This, along with increased rates and reduced service, could lead to operational issues for shippers.
More than 100 shippers have already written letters supporting the UP-NS acquisition, with hundreds more expected to do so. However, BNSF contends that shippers will bear the cost of the $85 billion acquisition, with UP targeting a 10% volume growth. UP and NS, on the other hand, argue that their acquisition will improve competition, boost the economy, and support American manufacturing.
BNSF's Richards has urged customers to forward their concerns about the proposed acquisition to the Surface Transportation Board. Meanwhile, UP denies BNSF's claim of planned intermodal lane closures, stating it is 'unfounded and absolutely false'. The debate continues as hundreds of shippers from various sectors express their opposition to the UP-NS acquisition.
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